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The report finds the Taiwanese smartphone shipment volume declined 0.5% year-on-year and reached around 79.6 million units in the second quarter of 2018, the traditional weak season for the industry. The decrease in shipments to Sony and LG, whose sales have dwindled, has offset the increase in shipments to Apple, Huawei, and Xiaomi. Nevertheless, as the change in business model of Taiwanese branded vendors from manufacturing to outsourcing continues, their contribution to the industry will likely to drop further. The shipment volume of the industry is estimated to have enjoyed double-digit sequential growth in the third quarter of 2018 as Apple always replenishes inventories in this quarter in anticipation of the upcoming holiday season, and Huawei and Xiaomi orders have made significant contribution to the industry. Meanwhile, the production of Google Pixel smartphones has begun in the third quarter. Shipments to Google, although still contribute a relatively small share to the industry's total shipments compared to Huawei and Xiaomi, are expected to make a contribution to the industry similar to that made by Sony.